business & Leisure: Frankston | Mornington Peninsula | Dandenong
DECEMBER 2012 | $4.95 (GST inc.)
WOMEN OF THE SEA WORKING WITH DOLPHINS IS A NATURAL ATTRACTION
ANOTHER TILT AT MARINA CITY SAYS INVESTORS EMERGE IN WAKE OF TRADE MISSION
note of caution for our banks we’re not like europe but china may pose problems
Start your engines. The un-tolled Peninsula Link freeway is scheduled to open in early 2013. With EastLink, Peninsula Link will provide quick and reliable access between the Mornington Peninsula, Frankston, Dandenong and Melbourne’s east. Do your business planning now so that your business is ready to take full advantage of the Peninsula Link growth engine – as soon as it opens.
who/what/where
ISSUE 30 / DECEMBER 2012
FRANKSTON / MORNINGTON PENINSULA / DANDENONG
TONY MURRELL KEITH PLATT MARG HARRISON DAVID HILET MELANIE LARKE SIMON BROWN Design MARLON PLATT
Publisher / Director Editorial Director Sales Director Managing Director Material production / Prepress
Email: General: inquiries@businesstimes.net.au Editorial: news@businesstimes.net.au Advertising: sales@businesstimes.net.au Artwork: production@businesstimes.net.au Internet: www.businesstimes.net.au BusinessTimes is published 11 times a year by BusinessTimes Pty Ltd and printed by Galaxy Print & Design, 76 Reid Parade, Hastings, Victoria 3915. Postal: PO Box 428, Hastings, Victoria 3915 Tel. 03 5979 3927 Fax. 03 5979 7944
Are you in BusinessTimes? For advertising, contact Marg Harrison on 0414 773 153 or marg@businesstimes.net.au Make sure every business knows your business. DISCLAIMER: Information in BusinessTimes contains general advice only. No article or column has been prepared taking into account any individual reader’s financial situation, investment objectives or particular needs. Readers should personally consult professionals for advice on any matter, including investment, health and the law. While all care is taken, BusinessTimes accepts no responsibility for errors or omissions in the published material. Views expressed are not necessarily those of BusinessTimes Pty Ltd. All content is copyright.
Departments News Busy Bites Networking Appointments Business Directory
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BIRTHDAY BOOMER MIKE ELLIS GOES IN SEARCH OF THE TIME OF HIS LIFE: P19
Columns Networking: Ivan Misner Markets: Richard Campbell Health: Mike Ellis Motoring: Ewen Kennedy Managing: Hamish Petrie COVER: Businesses run by Torie Mackinnon and Judy Muir depend on natural resources – dolphins. Their workplace is subject to constraints, and delights, unknown in the office or on the factory floor : P12
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This issue
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MARINA DEFROSTED: Efforts re-kindled to find Frankston marina money.
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Women have been elected unopposed as the mayors of councils covering Dandenong, Frankston and the Mornington Peninsula. Lyn Bowden Sandra Mayer Angela Long Cr Angela Long is serving her second term as first citizen of Dandenong, Cr The three municipalities have set the Lyn Bowden will lead the Mornington maximum allowances for councillors and Peninsula council for the first time and Cr mayors for 2012-13. Sandra Mayer is another first-time mayor Mayoral allowances are $93, 458 in Frankston City. (including $7717 superannuation) plus a Cr Long, an elected city representative fully maintained and fuelled vehicle for legal services a business andinits people need duties and private use. forFor 12 all years, was Dandenong’s mayor mayoral 2000. Councillors’ allowances are $29,259 Est.identified 1954 She the most significant (including $2416 superannuation). project facing council in the coming year as the central Dandenong municipal www.whitecleland.com.au building project, started in July. Brian Hartung thinks it’s time to hand Cr Bowden won her second term repreover the whip. The now-retired former senting Watson Ward in the November business owner runs a few head of cattle council Levelelections. 3, 454 Nepean Hwy Frankston 9783at2323 Shoreham, but the whip he holds is Also in her second term is Cr Mayer, gold-plated and of a type used by racing of Carrum Downs, who represents jockeys. Level 8, City’s 256 Queen Melbourne 9602 4022 Frankston NorthStreet, East Ward. Presenting a whip to the rider of each
year’s Melbourne Cup winner has beenacquisitions a . corporate tradition since 1888, and has been named& sales . the Wirths Whip since at least 1896. The name came from Wirths Circus, . corporate counsel services . which made the presentation part of a . business debtwas recovery . performance on Cup night. The event so popular that seats were booked a year . defence & government ahead. contracting . A traditionalist himself, Mr Hartung and his wife Maureen decided to foot the . employment law . bill when the Wirth family bowed out in 1989. . commercial law . Now 73, Mr Hartung believes it isproperty time the whip was handed on, but wants to . franchising . preserve its name. The name Wirths Whip is a registered . insolvency & bankruptcy . trademark and a website is under construction. . intellectual property licensing He will not reveal how much he pays & technology transfers . silver and goldsmith Terry County to mould and make each whip .and says commercial leasing . that he and his wife “just wanted to see tradition preserved”. . local government . There is no doubting the whips have value - one used by Phar. Lap’s Jim plans . offsetsjockey & industry Pike in the 1930 Cup was 4 . probate & administration of deceased estates .
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news
The Victoria Racing Commission went to the trouble of catching up with last year’s Cup winner, French jockey Christophe Lemaire, who rode Dunaden, in Mumbai, India, during a Super Trade Mission to the subcontinent led by Premier Ted Baillieu. VRC vice-president Amanda Elliott, who was part of the trade delegation, made the belated presentation. Although the name must remain the same, Mr Hartung believes accolades and opportunities will await anyone, or business, that agrees to follow the Wirths Whip tradition.
STELLAR START-UP
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Picture: Yanni
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Brian Hartung
auctioned in 2000 for $36,000 and another was listed for auction this year with an estimated price of $10,000$15,000.
Goodwill and free labour can work wonders. In just one year the not-forprofit Disabled Surfers Association’s Mornington Peninsula branch saw its bank account jump from $80 to $42,000. The stellar start-up was based on a model developed by the Disabled Surfers Association of Australia, started in NSW in 1986 to enable injured surfers to
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get back into surfing. The Mornington Peninsula group first met in November 2011 and four months later held an “event” to give disabled people a taste of surfing. Twenty participants hit the water with the aid of 226 volunteers, the biggest first event turn out for any of the DSAA’s 15 branches. Branch secretary Ash Gardner expects up to 90 participants and 400 volunteers at an event planned for next February. In the past year the group has also managed to raise enough money to buy five $4200 wide-tyred wheelchairs that are used to transport those unable to walk across the beach to the water. At the end of its first meeting the branch had $80 and one wheelchair donated by the national body. All six wheelchairs will be available year round from lifesaving clubs across the peninsula. The peninsula branch’s plan of action included finding sponsors and training volunteers to help disabled people enjoy a day in the surf.
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“Our function is to provide a safe surfing experience for disabled people, giving them access to what we take for granted,” peninsula branch treasurer John Bowers said. Mr Bowers said adding in the cost of donated goods brought the association’s first year budget to $50,000. “Our major sponsors have been
generous and extremely helpful. It started with a letter I dropped in to Bernie Taylor of the Grand Hotel, Mornington. I couldn’t believe he called for a meeting soon after after I delivered the letter.” Since that initial offer of support money for the wheelchairs has come from Mornington Peninsula Shire, the RACV and Rail Signalling Services at Dandenong
South. A trailer for equipment came from Auswide Trailers of Carrum Downs and Nepean Waste, with Progress Signs adding sponsor logos. Donations from the Mt Martha, Balnarring and Hastings branches of the Bendigo Bank have bought rash vests, marquees, surf aids, surfboards and wetsuit socks that give total body cover for severely disabled participants. “The grade six pupils at The Peninsula School ran a fete and donated funds for us to buy special soft surfboards for our events,” Mr Bowers said. Pt Leo lifesaving club opened its doors for use by the DSAMP and Pt Leo Foreshore Committee donated gate receipts on event days while help from within the commercial surfing community came from Simon Duff of Mornington Peninsula Surf School, Peninsula Surf and Trigger Bros. To get involved call Ash Gardner on 0417 362 983, go to www.disabledsurfers. org or search Facebook for Mornington Peninsula Disabled Surfers Association.
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December 2012 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 5
BUSY BITES
‘Heart’ of the south-east GREATER Dandenong’s new $63.5 million civic precinct will act as the heart of the entire south-east region of Melbourne, according to former mayor Cr Youhorn Chea. The new civic administrative centre, on the corner of Lonsdale and Walker Sts, will feature a regional library of 2500 square metres and an outdoor community space “designed in the spirit of Melbourne’s Federation Square” and provide easy access to council services.
Wait for gateway signs A PLAN to brighten Frankston’s gateway signage will rely on funding from council’s 201314 capital works budget. Council officers stated that the Frankston Gateway Vision and Action Plan required external expertise in signage to ensure signs were designed in appropriate colours, size and fonts to be clear for road users and reinforce the desired image of Frankston.
No poll on projects
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Frankston councillor Colin Hampton has backtracked on his idea for a public poll for city projects totalling $20 million or more. He moved for the rescission of his own motion at council on 26 November. The decision would not have affected the aquatic centre project already underway.
Nicholas Andrews juggles for joy to see his beloved Hip Cat Circus featured on a van used around Frankston by Programmed Facility Management.
programmed van is wrapped in HIP cat circus A Frankston City contractor has taken to the streets with its support for the arts centre-based Hip Cat Circus. Programmed Facility Management has depicted the Hip Cats on a new service van used on the streets of central Frankston. Programmed provides a range of services to the council including cleaning, building maintenance, pest control, air conditioning, automatic door and lift maintenance and gutter cleaning. Nick Higgins, regional manager for Programmed, said the van’s design was a celebration of a long and successful partnership with the circus.
“Our facility management business has had a long relationship with Frankston and we have sponsored Frankston Art Centre’s Hip Cat Circus for eight years.We are very proud of the partnership and the opportunity that the circus gives the young people of Frankston to develop skills, self-esteem and confidence. “With the upgrading of our fleet, we wrapped one of the new cars to celebrate and promote the great work of Hip Cat Circus,” Higgins said. Hip Cat Circus gives young people aged five to 21 an opportunity – through circus training with professional trainers – to learn about safety, stagecraft, acting, leadership and management skills. A scholarship program also allows disadvantaged young people to participate. In 2012, Programmed’s sponsorship extended to two new initiatives – a school holiday project and a school engagement program called Recycle-Recreate-Reengage that connects families through the arts using recycled materials.
is your business protected? Mere ownership is no longer sufficient to protect your interests in personal property which is not in your possession following the introduction of the national Personal Property Securities Register earlier this year. “Personal property” means all property other than land and includes raw materials, finished goods, crops, equipment, vehicles and intellectual property. Registration gives priority to individuals and businesses who register their interests in
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6 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | December 2012
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If you need further advice on the PPSR, call Rod Evenden at White Cleland Lawyers, 03 9783 2323.
COMPLIANCE SURVEY The Australian Securities and Investments Commission (ASIC) is asking small business owners for feedback on how the commission can help them to better understand their legal obligations. The aim of the survey is to: • Gain an understanding of small business knowledge of compliance obligations • Assess whether small business owners know where to find information on compliance obligations; and • Get feedback from small business on how ASIC can make compliance easier. The small business survey is available until 21 December and can be completed through the ASIC website .The survey is anonymous and takes about five minutes.
MARINA BACK ON AGENDA Frankston councillors are being advised to revive the search for investors in the proposed Olivers Hill marina to cash in on an offer from Tourism Victoria. Council’s investment attraction facilitator Jason Sharp says Tourism Victoria’s offer to help finance the re-tendering the project is open only until the end of the 2012/13 financial year. Mr Sharp’s report says that despite abandoning the tender process in 2010, council officers continued working to gain extra time for the marina from Planning Minister Matthew Guy. “The Cultural Heritage Management Plan has also been completed with a preliminary Indigenous Land Use Agreement negotiated in principal,” Mr Sharp said. Mr Sharp has been at the forefront of efforts to attract investment to Frankston and in September accompanied the then mayor Cr Brian Cunial to China as part of a state government Super Trade Mission. The trip had seen Frankston “rejuvenated” as an “investment destination” with “a number of investors” having since made contact to further discuss the marina. In his report on council’s 26 November agenda Mr Sharp said lack of response by potential investors saw the project put on ice. He now wanted officers given the go ahead to “explore and promote the project without prejudice or commitment”. “Mitigating the risks of the project for both council and potential developers was a key learning from the first tender process,” Mr Sharp said. “One of the outstanding risks is the land use agreement. Utilising council’s relationship with the indigenous landowners, a process has been entered into to deliver an agreement on behalf of any future developer. This process is almost complete.” Mr Sharp’s report explained that council faced a $1.5-$2 million budget shortfall, but said an extra $5000 was needed to cover the costs of finalising the Indigenous Land Use Agreement.
Calculate fuel credits FUEL tax credits provide a credit for fuel tax (excise or customs duty) that is included in the price of fuel used in business activities. Fuel tax credit rates changed from 1 July. Rates vary depending on what type of fuel used and the activity it is used in. For heavy vehicles, travelling on public roads, use the rate in effect at the beginning of the tax period covered by your BAS. For all other activities, use the rate that applied when you acquired the fuel. This may not be the rate in effect when you use the fuel or claim your credits. For more information on the changes to fuel tax credit rates, read Fuel tax credits changes from 1 July 2012 on the Australian Taxation Office (ATO) website. For information on the latest rates, see the ATO’s Fuel tax credits rates and eligible fuels page.
Palm city Indigenous and exotic palm trees may be planted along Nepean Highway in Frankston. Former mayor Brian Cunial has called for a report in February about placing palms in the median strips between the base of Oliver’s Hill and Frankston Pier and between Fletcher Rd and Mile Bridge.
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personal property over those who do not. For this reason, it is important to register any interest you may have in personal property to ensure that your interests are protected. In addition, if you supply personal property to a business which goes into administration, the administrator will be entitled to sell the property and distribute the proceeds among the company’s creditors unless your interest in that property is registered on the PPSR. For example, if your terms of trade contain the necessary conditions, you can register your interest in goods you have supplied to another business on credit. Also, if you lease equipment, including as part of the lease of a building, then you can register you interest in that equipment provided your lease contains the necessary conditions. The PPSR constitutes a fundamental change in the treatment of competing interests in personal property in Australia with wide ranging implications. You can use it to your advantage or ignore it at your peril.
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December 2012 | Frankston / Mornington Peninsula / Dandenong | BusinessTimes | 7
NETWORKING
1. Frankston Business Chamber met for a networking night at Replas, Carrum Downs, on 13 November. From left are Paolo Quintanilla, of Senswide Employment, Lizzy Deitz, of Mortgage Choice, Karingal, Amy Neil, of Burlesque Studio, and Michael Grey, of Wignall Ford. 2. Chamber networking night guests (from left) Phil Walsh, South East Water’s manager of Project and Financial Services, Jo Iskandar, Ron Chowanetz, of Money Resources Group, and Rochelle Clift, of Signature Shoes. 3. Frankston Business Chamber golf day at Settlers Run, Cranboune, on 19 October. Pictured are Geoff Crowder, of Nichols Crowder Real Estate, and Julie Kent, of Kent Plumbing, Frankston. 4. The final Monash Business Breakfast for 2012 was held at Mornington Golf Club on 30 October. From left are Professor Mike Ewing, head of Faculty, Peninsula, Chris Blaber, of The Virtual Network, and guest speaker Peter Wagstaff, of Monash University, who discussed social media. 5. Day at the races: Enjoying Peninsula Cup Day at Mornington on 4 November are the girls from Zumay Hair Salon, Mornington, Sandra, Victoria, Shauna and Melissa. 6. Natalie Isarin (right) was judged Miss Peninsula Cup at the Mornington race day. She is pictured with friend Lea Rajendran, of Sundari Cosmetics. 7. A presentation about the revamped Peninsula Centre was made to potential investors and agents at Frankston Lifesaving Club on Thursday 15 November. From left are Paul Fairbairn, Dawes and Milne First National, Doug Hanson, of William Jack Real Estate, Stephanie Freeman, of ABC Financial Group, and Don Lee, of William Jack Real Estate. 8. Stephanie Freeman with Jonathon Deague, a director of Asian Pacific Group, which is redeveloping Peninsula Centre as apartments, restaurants and rental accommodation. 9. Kingston Business Women’s Network met for lunch at the Hemisphere Hotel, Chisholm Keysborough, on Wednesday, 21 November. Pictured are Julia Dyer, of Design 22, and Maria Findikakis, of Eview Real Estate. 10 Business Women’s Network guest speaker Amanda Gome, business journalist and former CEO of Private Media, owner of Crikey.com, with Marian Hamilton-Kerr, of the City of Kingston. 11. Proudly Frankston launch, 26 October, 2012, at Frankston Dolphins cluibrooms, Frankston Park. Russell Poole, of Frankston Rotary, and director of Poole Nominees, Mick Spruhan, branch manaher Bendigo Bank, Carrum Downs, Trudy Poole, of Frankston Rotary, Mark Davenport, Bendigo Bank Carrum Downs, and Alan Daniel. 12, Frankston Football Club coach Simon Goosey with Jaymie Graham, development coach (leadership and welfare), St Kilda Football Club. 13. David Begg, of Website Renovators, Carolyn Johnson, of CMJ Solutions, and Ken Jungwirth, of KJS Enterprise Solutions, a member of Proudly Frankston “legends”. 14. Mick Sayers, Michelle Roberts, financial adviser with bcv Financial Solutions, who is also the new president of Frankston Dolphins Junior Football Club, Mark Bowden, general manager of Berwick Volkswagen, vice president of Frankston District Junior Football League, and Michelle Gradwell, accountant with bcv Financial Solutions.
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15. Former Frankston City chief executive officer Adrian Butler, Robert Thurley, chartered accountant and member of Kananook Creek Association, Max Butler, of Wine Swap, a former chief executive officer at the former City of Chelsea, enjoy the Proudly Frankston launch.
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16. Michael Shone, administrator of Damiani Construction, owner of CPC Concreting Panels and Floors, South Dandenong, Bryce Palmer, of Bayport Group, Chris Torossi, of Bayport Group, and Robert Thurley, chartered accountant and member of Kananook Creek Association. 17. Past Frankston City mayor Cr Brian Cunial, Ricky Bell, of AFL Victoria, Jane Homewood, Frankston City acting chief executive officer, and Bryan Mace, Frankston Dolphins football operations manager.
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18. Michael Nettlefold, St Kilda chief executive officer, (right) with Glenn Tanner, Saints’ general manager of sales (left), and Scott Ellis, St Kilda’s business development executive. 19. Tony Murrell, of BusinessTimes, with Mornington Peninsula cricket and Counry Week legend Brian McCue, director of Optus Business Centre, Carrum Downs. 20. Steve Carter, of Electron Flow, with Chris Holland, of Bayport Group at the Proudly Frankston launch.
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21. Bombers Ashley Brown and Mark Baguley, of the Essendon Football Club.
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Centrebet Mornington Cup Day Wednesday 13 February 2013 The Mornington Peninsula’s premier sporting and entertainment event. Be swept up by the racing excitement in one of Mornington’s premier dining facilities. With uninterrupted views, gourmet dining and an extensive range of beverages, there are packages to suit all.
Dining packages on sale now.
For booking enquiries please call 5975 3310 or visit mrc.net.au December 2012 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 9
NETWORKING
Family obligations Occasionally I hear people express concern about family obligations interfering with their ability to attend business meetings. This prompted a survey addressing gender issues in networking. I was expecting to see a dramatic difference between men and women relating to family obligations and time devoted to their networking efforts. Instead, what I saw surprised me. Several women had told me over the years that attending networking meetings in the morning was very hard for them. This is understandable because, even though our society appears more gender-equal than in the past, a large number of women have said they do the lion’s share of household operations. Yet in our survey results, the difference between men and women turned out to be very small; only a few more women (9.3 per cent) than men (8.4 per cent) expressed difficulty with morning meetings. Almost 22 per cent of men, compared with about 19 per cent of women, said that it was always easier to attend networking functions in the morning. Although the women in our survey found morning meetings to be less convenient, it was not by a large factor. It seems that benefits of networking outweigh scheduling obstacles. Both women
Dr lvan Misner*
Networking specialist
By the validation of many people vouching for you, your name is passed along with more and more frequency and confidence and men understand that, and this is why I believe the results were so even. First, let’s take a hard look at financial benefits. In any business there are both soft and hard-money costs to consider. “Hard money” is that which you take out of your pocket and includes credit cards, cash, cheques, and other possessions with monetary value. “Soft money” is used to assign value to services or invested time, otherwise known as sweat equity. It may come as a surprise to you, but the riches that invested time reaps are greater than hard money spent. You also get more value for your soft-money investments than you would for spending what you think the
APPOINTMENTS
RAY Ball began with St George in 2003 as a Business Development Manager for its Third Party Intermediary division. In 2008, he took up appointment as branch manager of the newly-established Frankston branch in Shannon Mall. Ray has lived and been actively involved in Frankston for the past 25 years. He is excited with the new challenge of opening Bank of Melbourne’s 63rd branch in Victoria, at Mornington, and being a part of the Mornington Peninsula community.
Michael White is a co-director of a fledgling company Australian Energy Audits Solar based on the Mornington Peninsula. Mike has more than 20 years’ experience as an electrician, master tradesman and Eco Smart electrician. Also, he has Clean Energy Council accreditation. The company designs, fits and can arrange interest free finance for your self sustainable energy needs. Website: www.australianenergyaudits.com.au or call 1300 723347 for free advice.
Ray Johnson began his working life as a school teacher before studying part time and moving into property valuations and then into industrial real estate. After working in the Frankston area he has joined Collins Commercial and Industrial based, Dandenong He has found the professionalism and energy of his new posting infectious and feels reinvigorated and refreshed and says he is enjoying work more than ever. He finds changing jobs is a form of self improvement not to be feared.
10 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | December 2012
equivalent is in actual dollars. If you were to add up the soft-money investments of labor, networking, connecting, and building relationships you may be surprised at the financial value you’ve delivered to your business. There array of positive wealth effects that networking brings, beyond just sales numbers, includes: • Added sales volume; • Higher average transaction amount per sale; • Greater closing ratio; referrals tend to be very qualified professionals; • Higher occurrences of leads and referrals; more repeat business; • Greater positive word-of-mouth marketing benefits; • More customer loyalty; • Stronger community recognition; • Greater perceived value. The more solid relationships you build, the more credible you are. The more your credibility grows, the more people will hire and recommend you. Even more important: The impression of quality is created through networking. The impression of quality is a powerful one. It is well-known that consumers are willing to pay more for services and products that they equate to be high in both ethical and product value. From locally grown organic produce and safer foods, to fair-trade-produced coffee and businesses that donate a portion of their proceeds to philanthropic ventures, consumers, by their spending choices, are showing the market that ethics and quality are what they want. What better way to convey the image of quality for your business than with the support vote of those who believe in you so much that they can’t stop talking about you? By the validation of many people vouching for you, your name is passed along with more and more frequency and confidence. After you have repeatedly established proof of quality, you’ll be referred in such a manner that neither your rates nor quality are questioned. These benefits transcend gender differences.
Dr Ivan Misner is a New York Times bestselling author. He is the founder and Chairman of BNI, the world’s largest business networking organisation. Dr Misner is also the senior partner for the Referral Institute, an international referral training company.
Do your competitors have a technological edge? With the slow economy, many businesses are turning to technology to find that edge against their competitors, allowing them to either make more money, increase market share or both. Here, we look at a number of ways that modern businesses are leveraging technology to modernise their office to ensure they have the competitive edge required to meet the needs of their customers, their staff and to make a profit. Digital Signage: Help your employees stay informed of crucial business metrics and announcements by leveraging the informational capabilities delivered through digital signage. A large LED monitor on the wall can make it quick and easy for everyone in the team to know the key metrics, and as we all know, what gets measured gets managed. Remote Monitoring and Automation: Some businesses do run their IT network by the seat of their pants and sometimes it comes back to bite them. By making sure that all patching and routine maintenance is done, businesses are able to minimize interruptions to employees work and more importantly, avoid unscheduled downtime caused by networks that haven’t been properly maintained. Email Management and Administration: Email communication is critical and many businesses are making sure that employees have access to their emails 24/7 to enable them to provide better customer service. Many are also realising that email marketing is often the most cost effective way to reach out to both existing customers and prospects and increase sales. When was the last time you sent out an email campaign? Security: Some businesses suffer expensive downtime from security issues, whether it is employees stealing confidential information, virus attacks or external hackers. Security audits and firewalls can dramatically decrease the risks. Hardware as a Service (HaaS): HaaS is an extension of renting or leasing your Hardware. Now it is possible for businesses to pay a fixed monthly fee for all the hardware, software and support required for a PC or Laptop. This makes budgeting a lot easier and allows for easy growth as your business grows. Help Desk: Computer problems or downtime get in the way of employees trying to do their job. An outsourced helpdesk provides rapid resolution to these problems. When looking for a helpdesk find one that will train your in-house resources in
troubleshooting minor issues. Getting someone inhouse to fix minor issues is quicker and more cost effective. Storage, Backup and Disaster Recovery: There have been significant changes in the past few years with storing and backing up data, and businesses now have a lot more options. Business can now plan more quickly than ever torecover from a server failure or theft with technology like bare metal restore and Microsoft Hyper-V. Surveillance: Surveillance cameras make it easier to meet the needs of Workplace Health and Safety, physical security and monitoring of the workplace. Surveillance systems can even be monitored from your mobile phone. Telepresence: Fast internet now means that many meetings that needed to be face to face, can now be down with a some videoconferencing equipment, dramatically decreasing the travel budget and eliminating time wasted in travel. Printer Management: How much money is your company spending on printing without even knowing it. An audit can quickly pick up the printers that are costing far too much to run and
there are a range of solutions from economical printers to cost per print printers, decreasing the cost to print, while enabling your company to promote itself in the best way possible. Professional Services: Whether it is a quick coffee to catch up on the latest trends in technology, or a virtual Chief Information Officer board meetings, there are many ways that companies can now get a clear roadmap of where technology is going and how they can best profit from it. Voice Networking (VoIP): VoIP has finally come of age and many businesses are slashing their telecommunications costs. The days of the old PABX are finally over and businesses, especially businesses with multiple sites or making a lot of international or interstate calls, are saving thousands of dollars by implementing VoIP. There are many ways here that companies are moving forward, and the best way to start is with a quick chat. Putting great technology into your business is OK and helps, but it becomes very powerful when the technology plan is a part of your overall business plan. This ensures that the dollars are spent in the right place with the right result for the business.
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December 2012 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 11
cover story: POLPERRO & MOONRAKER
POLPERRO Dolphin Swims and Moonraker Dolphin Swim are Sorrento businesses that depend wholly on natural resources – dolphins, seals and Port Phillip. As well as being subject to the vagaries of weather and uncontrollable wildlife, Polperro and Moonraker come under extraordinary government regulations and scrutiny that do not apply to land-based businesses. They operate under three-year licences, which limit the daily number of ‘swims’ and must provide detailed reports about passenger numbers and trips. Both businesses are family run have won industry awards. Despite the mountain of regulations the two women behind the businesses – JUDY MUIR at Polperro and TORIE MACKINNON, Moonraker – told KEITH PLATT they wouldn’t change a thing. The not-for-profit Dolphin Research Institute also tracks the dolphins, but only for research and education.Director JEFF WEIR says there is no easy way or shortcut to obtaining funding.
swimming with dol
What affinity do you have with the marine animals that are the drawcard for your business? Judy Muir: For more than 30 years we have watched a small population of dolphins go about their daily lives. We know more about them now, but our understanding is based on glimpses. Most of what happens in the marine environment takes place beneath the surface and beyond our gaze. As a crew, our combined 100 plus years of experience and research has given us amazing insight and a good working knowledge. From that we are able to balance environmentally responsible interactions between our swimmers and the dolphins. Torie Mackinnon: My childhood home was an aquarium on the foreshore at Sorrento. I was raised on the beaches snorkeling, fossicking and exploring the shores and the shallows of Port Phillip, which gave me a natural affinity with anything on or under the water. Seals are my fascination, with their quirky characters and inquisitive natures. Seeing the dolphin families emerge and watching them transition from calves to mothers, mothers to grandmothers and beyond, developed my protective instincts and defined my respect for these amazing creatures. It is a privilege that very few of us get to experience on a daily basis and I treasure it dearly. What is your business plan? Judy Muir: Environmental considerations are the base for success. With 26 years behind us, I would have to admit that the business plan was, in its initial phases, organic. We had no secure tenure, so we planned year by year but always with a principled approach and with long-term sustainability as a goal. Torie Mackinnon: My business plan is an ever-changing document of goals, dreams and future projections. From the beginning it was to grow and expand, now it is to educate and create awareness of the fragile ecosystem that exists on our doorstep. I operate on the belief that if you can create an ownership of something, people will want to respect and protect it.
Torie Mackinnon and Judy Muir at Sorrento.
What special business considerations are posed by working with a natural resource? Judy Muir: Dolphin tour operators work cooperatively and collaboratively. We rely on other operators abiding by the legislation and we communicate throughout the trips. We depend on weather, fish stocks, migratory patterns in wildlife and scarcity of resources. Dolphins depend on fish stocks and we have an increasing dependence on the stock market and global financial trends as we cater for international tourists and compete for the expendable dollar. Torie Mackinnon: Fundamentally, we rely on the natural environment to operate and conduct our tours. With any future changes and developments we will consider the outcomes for the resource we rely so heavily upon, be it the seals and dolphins or the bay’s unique and fragile ecosystem. We aim to be sustainable and help others recognise the importance of protecting and enjoying our local natural resource.
12 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | December 2012
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Are there any problems that your business would face compared to, say, a factory or a shop? Judy Muir: It’s not so bad rowing to work, but having a homebased office presents problems as there is never a clear delineation between work time and home time. We rely on the support by government of good governance in the care of our environment. A business owner in a factory or contained area has the right to make the workplace as clean and healthy as they wish or are legally bound to, whereas we are at the mercy of the public and the government to be custodians in concert with our business. A factory boss can close the door on a gale or control temperatures over summer. Our trips are weather dependent, therefore so is our income. Torie Mackinnon: Our business has many external elements that affect the day-to-day operations, from strong winds and inclement weather preventing the tours from operating, to the fact that we are working with wild animals that are not trained to
conform to our visitations. The seals and dolphins live their own lives and choose to interact if they want to. We operate seasonally and work longer hours than a nine-to-five business. Are there any regulatory requirements proposed that could affect your business? Judy Muir: The imposition of regulations and the limited size of this industry have actually ensured sustainability of the dolphin population. An open slather approach based on market forces and slashing red tape would have led to over-development and not ensured the survival of the species. Torie Mackinnon: We are strong supporters of regulatory reform when it comes to wild animals and our marine environment. The regulations and licence conditions could possibly limit our business growth, but the end result ensures our visitations do not impact on the dolphins’ and seals’ environment. What does the future hold? Judy Muir: Great opportunities for improving protection for dolphins, largely because they have become iconic and now have a dollar value apportioned to their survival. Without tourism and the industry-led push for the licencing of operators and strict operating laws, the dolphins may have gone the way of those pods that used to be in Sydney Harbour and Botany Bay. Torie Mackinnon: We will continue to explore ways to expand and improve, delivering a range of tour options, from small group tours to a large capacity first-class tour. We are greatly encouraged by the awards that have recognised the quality of service we provide and our positive attitude to eco-tourism. How do you promote your business? Judy Muir: Our advertising budget is paltry. Placing our dollars strategically and relying on word of mouth has given us a high profile and branding. We invest in local product, highest quality gear, support charities and conduct educational sessions for free or at cost. We support research. Talk the talk, walk the walk. We have just adopted Facebook, are upgrading our website and we talk to our customers. Free ink – I suppose this article is free-ink – brings us to the attention of the public. Torie Mackinnon: Moonraker is promoted internationally and domestically through agents, inbound tour operators, print and electronic media and local publications. During the season we have television and magazine advertising and feature in travel shows. We have a lot of repeat business and word of mouth reviews. How many people do you employ (full time or part time)? Judy Muir: We have the full-time equivalent of 3.5 staff. Family members outside of that number are generous with unpaid support at every level. Torie Mackinnon: We have three full time employees – myself and my mother, the founder of the company, our boat operations manager and 10 casuals – guides, receptionists and a research student. Do you feel that you know the dolphins and seals you see on a regular basis? Judy Muir: Yes. We know many as individuals. Each has a personality and temperament. We have assisted in many research projects and in dolphin population studies. It is apparent that dolphins know our crew as individuals and seek us out in a line of people. As we never touch dolphins, they are free to come close without any threat to their wellbeing. That is the magic and sheer 14 beauty of these encounters.
December 2012 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 13
cover story
Protecting dolphins and business By Jeff Weir I would love a higher salary – but you don’t work for an organisation like the Dolphin Research Institute to get rich. My wife says that I work for the ‘Salvation Army for Dolphins’ and I love it. I love going to work each day. I love working with passionate staff, volunteers, schools and supporters who are all trying to make the world a better place. The Dolphin Research Institute (DRI) is a not-for-profit company based in Hastings that recently celebrated 21 years of contributing to the community, so we must be doing something right. It was formed to protect dolphins, especially in Port Phillip, without any clear understanding of the threats or possible solutions. We were all volunteers and survived with some basic fundraising and support from individuals and businesses. It was clear by the early 1990s that the big issue we needed to overcome was the lack
SWIMMING WITH DOLPHINS 13
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Seals are full of play and antics that provide great entertainment, presumably for them as well as us. The saddest thing to see is the now-common entanglement of seals in fishing tackle and plastic bags. This year we also had a dolphin entangled in an illegal fishing rig. Torie Mackinnon: Most definitely. We see regular dolphins on a seasonal basis that can be easily identified by their distinctive markings and notches in their dorsal fins. We know if they are curious and interactive or prefer to keep their distance, and that determines the dolphin swim you can achieve with out placing unrealistic expectations on the animals. The seals are a transient population and regular seals can be identified at certain times of the year, or if they have been tagged from a research study. What have you learnt about dolphins? Judy Muir: We have learnt so much and we know so little. Studies on wild dolphins are recent and studies on dolphins in captivity have very little relevance to those in the wild. I know that to protect a species we must protect their environment. They are a social group and
Jeff Weir, director of Hastings-based Dolphin Research Institute.
of adequate management of a burgeoning dolphin tourism industry. There was no provision in the Wildlife Act for the tours to operate, so they were in no man’s land. We believed that properly regulated, dolphin tourism could actually support conservation through quality interpretation. There were also problems caused by private vessels harassing dolphins. We worked with the tour operators and government to develop a voluntary code of practice and undertook research that helped frame changes to the Act and regulations in
1997 and again in 2008. I’m quite proud that Victoria led the world in regulating for a sustainable dolphin tourism industry and heading off almost certain problems for the dolphins. Being not for profit just means that any surplus accrued by the DRI is returned to supporting our research, education and conservation work. We are subject to the same regulatory and ethical compliance obligations as all small companies, plus a whole lot more. The solid principles of good business apply
this ensures survival. The presence and health of the bay’s dolphins is regarded as a litmus test for the ecosystem that sustains them and like that system they have shown themselves to be remarkably resilient. They are also pragmatic. When the pilchard population was wiped out in the 1990s the dolphins ate anchovies, crabs and eels. Torie Mackinnon: I have learnt that no matter how hard one looks, they still have the ability to hide. We travel out onto the bay from October to May searching for the dolphins and over the busy summer holidays there are hundreds of recreational boats and onlookers. The dolphins are inquisitive and love to interact with people, but they can be mischievous and moody. If they do not feel like interacting or are resting from feeding they will decide to keep their distance. It is their home and they will welcome visitors only if they want to. It can be frustrating, but it makes us realise that they are not that dissimilar from us. What has working with dolphins taught you about people? Judy Muir: Most people are well intentioned. There may be members of the public that behave inappropriately around
dolphins and seals, but given the right information in the right manner, they are usually willing to adjust their behaviours. We have people who believe in the magic of dolphins and strangely or otherwise they are rewarded with wonderful experiences. We have watched children grow up and bring their children out with Polperro. We often deal with the culturally diverse populations that live in Melbourne and its suburbs, which reinforces our awareness of the similarities we share. That fundamental need in humans to connect with nature is instinctive. Language can be universal, with signing and laughter. Torie Mackinnon: That being close to a wild animal brings out the very best and worst in people. I get so much enjoyment from seeing people overwhelmed from just being in the water with the dolphins, the amazement and joy our guests experience. You can provide a method of interacting with wild animals in a controlled environment, but people will either respect them and truly want the best for the dolphins or they will see them as just another animal.
14 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | December 2012
would look like are critical. At DRI we use an approach to business planning called “living strategy”, which makes it clear why we exist and helps us align our efforts towards achieving success. Our strategic priorities include research, education, community engagement and fundraising. The quality of our relationships and communication with networks, members, supporters, customers and the broader community is the critical common
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to DRI as they do to any organisation. We do have the advantage of having a skills-based board of directors who act as business mentors in a way that most small businesses would have to outsource. A director who was a partner in one of the big accounting firms used to always say “we need to stick to our knitting”. Of course the big challenge is to figure out what “our knitting” is. I believe that a clear understanding of our organisation’s role and sense of what success
denominator to success in all areas of our operation. I think this is common to all businesses. We wouldn’t be able to achieve anything without a successful fundraising program, so more than a decade ago we sent people to undertake professional training with the Fundraising Institute of Australia. It’s humbling to realise that we now have supporters renewing their Adopt-A-Dolphin memberships for the 20th year. Partnerships with businesses are also very important and they are best if they are win-win. A good example is Moonraker Dolphin Swim which support us in a number of ways, especially by donating a dolphin swim to new people who join our Adopt-A-Dolphin program. We see this as a great way to build our supporter base and of course bring new customers to our partner. Any businesses or individual who would like to become involved can call the DRI on 1300 130 949 or go to www.dolphinresearch.org.au
Centrebet Mornington Cup Day Wednesday 13 February 2013 The Mornington Peninsula’s premier sporting and entertainment event. Be amongst the racing atmosphere in a Private Marquee. With superior views on the trackside fence line and all facilities within easy reach, you won’t miss a minute of the action.
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For booking enquiries please call 5975 3310 or visit mrc.net.au December 2012 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 15
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Content is king By Beau Rixon, online strategy consultant, Click Forward Picture this: you are standing in a room next to a competitor. You are both wearing a suit, both offering the same products and services. Both products and services are the same prices. Now, up walks a potential customer and asks the question: “which one of you is the best?” Your competitor starts talking about his services, packages and and all the cool things he or she can offer. But, you can, too. When it’s your turn you don’t start by talking about your services or packages. Instead, you open your briefcase and take out an article you have written for a specialist publication. Instantly, the potential customer sees that through all the similarities you are in fact the expert and the one worth buying from. This may seem like a trivial story. However, it highlights how we as humans develop trust. We are more likely to trust someone that writes content and articles than someone who doesn’t. Online this is the same. It’s important if you want to rank better on Google and create a higher level of trust with your potential customers, you need to have a strategy for creating content. Here are a few tips and pointer to do this. Firstly start a blog on your website. I’d suggest a blog over the news section because a blog allows you to talk about anything
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16 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | December 2012
Demand for bookkeepers likely to rise A report released recently by the Department of Employment and Workplace Relations indicates that there will be increased demand for bookkeepers in coming years. This demand isn’t coming so much from massive growth in the industry, more so it will be those leaving the occupation that will create opportunities for the next wave of practitioners. This trend is likely to be as evident in the south-east Melbourne area as anywhere else, according to Hannah Downie, training manager at training provider, FS Learning. “Because we can see this opportunity infolding we have upgraded our bookkeeping course,” Downie said. “We offer the nationally accredited Cert IV in Bookkeeping and have developed a new course for MYOB based bookkeepers practitioners. Training will be conducted by Tina Hanigan, whose experience spans more than 20 years.
This course provides a nationally recognised qualification in bookkeeping. “Because there is movement in and out of the field FS Learning will look at each potential participant’s skill and experience and customise the course to best suit. As a result, four streams will be provided to accommodate differing needs of participants based on their work role or experience. For example, separate course units will apply to new entrants, others with some experience working in bookkeeping role within a company, contract bookkeepers and even franchise owners. Recognition can be give to relevant experience. Hannah Downie told BusinessTimes: “The course will be available both on the job and as classroom sessions and it will be Tina who will work with each participant to devise a program that best suits their needs. Classroom session will commence in the New Year, but enrolments can be confirmed immediately.” Details: 1300 550 482.
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relating to your industry – and it can also include news about your company. A news blog, however, restricts you to just updates about your business. Secondly plan an article cycle and type of posts. One article a month is generally enough for most businesses. Find something interesting in your industry: How to posts, Steps to..., Top 10 lists and reviews are articles that potential customers are searching on Google. Thirdly, make it easier on yourself and plan out at least six to12 months of articles. The easy way to do this is to jot down at least 10 titles for articles then add some bullet points about what the content should cover. Next, flesh out into basic sentences or alternatively you could get a copywriter in to help polish the articles. Once you have the articles written, load them onto your website every month and “bam” … you have now reached expert status. A little bit of work every six to 12 months and you’ll have payoff for months ahead.
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December 2012 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 17
MARKETS
Do the banks protest a little too much? There have been ruffled banking feathers of late. When Standard & Poors’ credit analyst said that our banking system was much like Spain’s before things went pear-shaped in Europe, there was a general harrumphing and head-shaking in the glass towers. This was a bit rich coming from Standard & Poor’s – the rating agency which had not only missed the GFC, but helped cause it by allocating the top AAA rating to securities that were not just poor, but total rubbish. Sure, Australian debt per person was very high and domestic deposits were only 52 per cent of their total annual funding, but there the similarities ended. Spain has a massive housing and apartment glut: we have housing shortages. There is no valid comparison: case closed. But soon after this nonsense was sent to the boundary some pesky IMF analysts said the same thing: Australia’s four big banks were too reliant on offshore funding and were vulnerable to a property correction. The banks urgently needed to build up their reserves against possible dirty economic weather ahead. This time there was real grinding of teeth. Hadn’t the Big Four been lifting their reserves since the slump in 2009? Weren’t their ratios of reserves to loans far higher than the international standards? And it was sheer nonsense to suggest that Australians were failing to meet their loan payments. Impaired loans and actual bad debts were also generally falling. CBA’s September update showed that impaired loans were down from $13.7 billion two years ago
Richard Campbell* Stock analyst
to $10.5 billion which was a mere .87 per cent of gross loans. Apart from NAB’s long festering problems in the UK and Bank of Queensland’s write-downs of Gold Coast loans, balance sheets were actually improving, not worsening. And in any event interest rates were falling at a time when there was actually an acute housing shortage supported by ongoing immigration. What were these guys smoking? But the IMF and Standard & Poor’s are not suggesting our banks are poorly managed or poorly regulated – far from it. They are leanly run and shedding bank jobs to prove it. No, the charge is that the world economic system is bleak and possibly getting worse. It is distorted by massive monetary stimulation and ultra low interest rate policies, not just briefly, but in the case of the US for “as long as it takes”. With almost zero rates in the US and Europe, money has fled to Australia, driven up the $A and squeezed exporter margins for miners and non-miners alike. No housing glut, but an export killing exchange rate just when the China boom is fading. This mixed and weakening economic
position for Australia is far from the perfect storm, but it is a concerning bind to be caught in when our national costs are very high – among the world’s highest. A cup of coffee is a lot cheaper in Paris and truck-drivers cost twice as much a day as they do in Texas. Costs of our major projects have spun out by 25-30 per cent and some are being shelved and jobs shed. Meanwhile, mainstay employment industries like construction and vehicles are contracting and retail is so-so. How vulnerable the banks are to this pervasive job erosion is hard to assess as those “let go” often live on their payouts or find something part time, but the concentration of mortgage lending is itself a concern. Of the $850 billion of housing debt, 80 per cent is owed to the big four. When adding investor debt and houses put up as collateral for business loans total debt is over $1 trillion. Meanwhile, bank debt is rising even though national productivity has stalled. Those who are well paid are saving more, but surveys show that about 50 per cent of households can’t save at all and about 10 per cent are falling behind on their weekly bills. This doesn’t mean that the banks are a “sell”, but most of the senior bank analysts have been cautious for months. In Spain they grossly over-built the Costa Azzura and Costa del Sol, but in China it was the lot: factories, shipyards, smelters, freeways and factories. Even a modest slow-down for China could be a big slow-down for us. In this setting the average investor needs to be cautious. The banks have good fully franked yields, but they could become steadily cheaper. *Richard Campbell is Executive Director of Peninsula Capital Management, Tel. 9642 0545. rcampbell@peninsulacapital.com.au
Successful business professionals are using BNI to gain Word of Mouth Referrals as a cost effective marketing strategy. Why not pay a group a visit? Locations Include: Berwick, Carrum Downs, Cranbourne, Dandenong, Frankston, Hallam, Mordialloc, Mornington (2 groups), Mt.Eliza & Pakenham.
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2117 18 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | December 2012
HEALTH
The wide blue yonder Nothing beats a significant birthday – one with a zero on the end – to get you thinking about the big questions, such as how many more you might have. We do live in interesting times, and a great thing about that is how you can get everything you need on the internet. Michael Ellis*
Chinese Herbalist Stock Analyst
difference between fitness and health, because the Chinese medical tradition has had a great deal to say on the subject. And it is somewhat fascinating to see that longevity researchers such as those behind the bluezones.com website are reaching the same conclusions. Since the 1990s, researcher Dan Buettner has been taking teams to areas around the world where people live the longest to observe how lifestyle and environment come into play. His book Blue Zones (National Geographic) – the “blue” bit refers to pockets of populations around the world known for their longevity, circled on the researchers’ world maps in blue ink – proposes nine ways to extend your life expectancy, based on the habits and values observed in the residents of these areas. His “nine lessons for living longer from the people who’ve lived the longest” are (with my comments in italics): 1. Move naturally. Don’t do marathons or pump iron; work around the house, garden, walk, cycle, walk when talking on the phone. Don’t mistake “physical fitness” for health. The Chinese considered draining your energy in exhausting exercise to be “going sideways” as it was diverting resources away from more your life’s work, and likely shortening your life, too.
* Michael Ellis is a registered Chinese herbalist in Mt Eliza. Visit www.mtelizaherbal.com
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My wife said I should get a 50th medical, so I went straight online and found a website that very usefully calculates how long you should expect to live. The website is called bluezones.com and is dedicated to exploring the science of longevity, particularly through population studies. It’s worth a visit. So I did the online survey, a series of questions that took a few minutes, after which it announced that my life expectancy was 89. All right, I thought, that’s reasonable. Thirty-nine more years. But, the website added, I could get an extra eight years – which would take me to the grand old age of 97 – on three conditions: eat more fish, eat more fruit, and go to church. So it looks like 89 then. Or maybe 92. I quite like fish. Fruit? They may have missed a point on that. It’s overrated for its health benefits unless it’s part of a whole food diet. You can’t just add fruit to a poor diet and be healthier, that’s not how things work. Anyway, I pondered, 89 is not so bad. That would be two more Collingwood premierships at the present average of one every 20 years. It’s probably not long enough to see a Melbourne one but you can’t have everything. And 39 years is only 429 more ideas for my BusinessTimes column. As regular readers would know, over the past several years I have written a fair bit about Chinese ideas on health and longevity, talking for instance about the
2. Know your purpose. Have a reason for waking up in the morning. 3. Kick back. Find ways to shed stress, whether it’s praying, napping or going to happy hour. 4. Eat less. Stop eating when you are 80 per cent full. I’ve written about this before. Overeating is a big problem in the West. Instead, leave room for digestion to occur. Wait 20 minutes before deciding if you really need seconds. 5. Eat less meat. Beans are a cornerstone of most centenarians’ diets. We need meat for a healthy balanced diet, but we eat way too much. Five per cent of your food intake is enough. Beans strengthen the kidneys, the deepest most essential organ system, and the one that controls ageing, in Chinese medicine thinking. 6. Drink in moderation. Only the Seventh-day Adventists in California didn’t have one to two glasses a day. Alcohol in small amounts quickens the blood, which helps maintain circulation. 7. Have faith. Denomination doesn’t seem to matter, but attending faith-based services (four times a month) does. The actual beliefs are unimportant – believe whatever you like (you will anyway). We’ve known this since a US study 20 years ago found that churchgoers lived on average four years longer than those who did not attend. 8. Power of love. Put families first, including committing to a partner and keeping aging parents and grandparents nearby. Family and community connections strengthen the Heart. 9. Stay social. Build a social network that supports healthy behaviors. As above.
December 2012 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 19
motoring: MAZDA6
Stunning frontal styling is a big feature of the all-new Mazda6. RIGHT: The new Mazda interior.
Mazda6 grows up Mazda has revealed its all-new ‘6 at the Sydney motor show ahead of its launch in early December. The new car has stunning frontal styling with Mazda’s so-called Kudo design theme giving it a huge grille that blends into the upper edges of the headlights in swooping curves. As is often the way, the new Mazda6 has crept up in size and is not far short of Aurion, Commodore and Falcon in its dimensions. This has resulted in excellent interior room, especially in the back seat which can easily cope with two large adults, making it a genuine family car by Australian standards. The interior also has a futuristic style and has a quality look that will appeal to buyers. This time around the Mazda6 is only being sold as a four-door sedan and a five-door station wagon, a hatchback is missing from the latest range. Power is provided by Mazda’s SkyActiv petrol or diesel four-cylinder engines. The petrol has a capacity of 2.5 litres and produces 138 kilowatts of power and
Ewen Kennedy Motoring Journalist
250 Newton metres of torque. Again, it has been slightly detuned so it can run on 91 octane petrol as preferred by many Australian drivers. However, some extra power has been achieved on 91 octane so the engine may well work nicely. We will let you know once we drive it. The turbo-diesel is a 2-2-litre unit and its peak outputs are 129 kW and 420 Nm. New to the model is a range of crash avoidance technologies, including radar cruise control, forward obstruction warning, lane departure warning and rear danger recognition. It’s likely most,
20 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | December 2012
if not all, these features will be offered in Australian imports as details are yet to be finalised. Given Mazda’s longterm focus on safety we anticipate many of the items being imported. We have yet to drive the new Mazda6 as its media presentation in a special location before the Australian International Motor Show (AIMS) didn’t provide a chance to drive it. As soon as the car does hit the roads downunder we will carry out a full road test. Mazda is on a roll in sales in Australia at present, with huge sales of the Mazda3 lifting the company into number three spot in the overall sales chart. The all-new Mazda6 will do it no harm at all in the sales race.
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MANAGING
Disasters and upsets We live in a strange and rapidly changing planet where every day we see news about some form of natural, or unnatural, disaster that has impacted on a large block of people and businesses somewhere in the world. On a smaller scale, we experience upsets in our daily lives when business systems break down or just malfunction, with the result that we can’t do what we wanted to do. In many of these scenarios, businesses suffer great damage that is often life threatening to them. But, it won’t happen to you – right? Every business leader focuses on developing systems and processes so that the business can operate smoothly and successfully, but often they fail to focus on preparation for the major things that can go wrong. These upsets can be created either externally or internally, but in each case the negative consequences can be minimised by thoughtful preplanning and preparation. Natural disasters seem to be more frequent and more severe in recent times, possibly connected to climate change. Floods, fires, storms, hail and so on are creating major failures of infrastructure with the result that normal life is interrupted and emergency systems take over. While these events are rare in any specific location, each business should have a process to consider what sort of natural disaster could potentially impact on them. This should lead into an analysis of what can be done ahead of time to minimise a potential business disruption. Nearly every business today is dependent upon its computer system, and this must be a major focus of this analysis. Disaster recovery has been an integral part of the IT function for many years, but they are still learning from recent events. A recent lesson was learned in the USA with Superstorm Sandy where many businesses had their back up system too close geographically to their normal operations, and hence, they lost both their primary and back up systems in the same storm event. While recovery of computer systems is important, thoughtful preplanning can also prevent failures in the first place. Sometimes the accumulation of simple things can help to improve the robustness of your systems. Things like setting up uninterruptable power supply, back up generators, surge protectors, fire protections systems, and local database mirrors will all help. The use of cloud
Hamish Petrie*
Business Consultant
computing is a recent development that can really help to improve the resilience of back up databases. When these sorts of issues develop on a broad scale, driven by external events, then your customers and other key stakeholders are usually tolerant of interruptions in your business. When it is an internal local failure, then the risks are much higher. Recently, while shopping in our local Woolworth’s supermarket, the computer system failed and stopped all checkout transactions. After a fairly lengthy delay, the store manager announced that it would take another five minutes to reboot their system. It actually took 25 minutes and during this time there was no system for managing their customers. No one communicated to incoming customers, then they locked the doors. This action also locked customers inside the store, so when customers could not wait any longer and wanted to leave, they unlocked the doors. Confusion reigned! Staff stood around waiting and the store manager was frantic. The lesson was that a well-prepared plan could have reassigned staff to manage both incoming and departing customers, or even rewarded those customers who waited the half hour for their purchases. Sometimes, it is the little things that help you actually build customer loyalty in difficult circumstances, rather than destroy it as evidenced in this case. The lesson here is that stakeholder management during a business upset is absolutely critical. Most businesses can experience an upset for a variety of localised causes. It could be a supplier failure, a quality issue or a transportation failure. Obviously, each situation will carry different risks and issues and require different solutions. Having a thoughtful prepared plan to guide you and your team through an upset situation will greatly increase the probability
22 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | December 2012
that you can minimise the damage. Perhaps you can even create the potential to actually improve relationships with key stakeholders because they respect how your team handled difficult circumstances. In all of the situations, there are two critical considerations – communications and your people. Communications must be open, honest and timely to all stakeholders. For example, don’t promise it will only take five minutes to fix an issue if you don’t really know that this will be correct. Your people can be a wonderful asset in difficult circumstances, if you empower them to help manage stakeholders. Make sure that you understand if any of them have special skills that can help. Sometimes some of your team your may be members of a volunteer emergency services group. If so, support them in every way and let them take on a leadership role in your plan. Usually, your support for your local emergency services will be greatly appreciated and welcomed, particularly outside emergency periods. Major events do happen here and have often struck very close to home during recent summers in Victoria. So, as you prepare for the summer holiday season, please take some time to think through your business situation and prepare a plan to help ensure that you, your people and your key stakeholders can have a safe and happy festive season. Action Planning Questions: 1. Have you identified potential natural disasters that could impact your businesses location and developed a plan to sustain your critical business processes in one of these events? 2. Have you analysed your computer system risks and installed appropriate counter measures to minimise system failures? 3. Have you developed a plan including communication and people management that can be implemented in the case of a business upset? 4. Have you liaised with your local emergency services groups so that you have a mutual understand of issues and capabilities? 5. Have you identified specific skills that your people have that can assist you in managing a business upset? *Hamish Petrie had a 37-year corporate career including 25 with Alcoa Inc. His latest position was VP People and Communications for the Global Alcoa Corporation based in New York. He can be contacted at hamish@nitroworld.net or on 0404345103. © Hamish Petrie 2012
Little planning on workforce needs Research shows almost half (47 per cent) of Australian businesses fail to look one year into the future when considering their workforce needs, while only 13 per cent consider a two-year window, according to the Randstad World of Work Report. The research also shows the two biggest human capital challenges expected to hamper business success over the next 12 months are increasing workforce performance and productivity and retaining top performers. And while 52 per cent of employers rate their ability to meet workforce challenges as average or poor, 54 per cent of Australian
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businesses spend less than 10 per cent of their strategic planning time on people issues. Steve Shepherd, Group Director of specialist recruitment & HR services company, Randstad, says the lack of resources being spent on workforce planning is worrying. “Organisations who aren’t actively working on ‘talent mapping’ within the wider business strategy are playing with fire. With the challenging economic environment, uncertain business confidence, the ageing population, skills shortages, management gaps, new job types and advances in the
digital world, it’s set to dramatically change the face of employment in Australia.” The research also shows generational change is top of mind for many employers, with many concerned about the impact Australia’s ageing workforce will have on their business. Almost half (48 per cent) of those surveyed believe the nation’s ageing workforce will have a negative impact on their business over the next 10 years, while 83 per cent believe integrating Generation Z into the workforce will present its own challenges in the next decade. While this generational change is inevitable, Shepherd says employers need to plan ahead and be innovative to ensure the transition is seamless.
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Promote your business for just $120 a month* Get your message out to business owners. Use this space to tell them how your product or service can help them. Call Marg on 0414 773 153. Email marg@businesstimes.net.au
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December 2012 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 23
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